4 Crucial Retirement Planning Concepts To Fully Understand

(don’t forget to checkout the video of this blog too)

Most people understand the principles of saving & investing very well.

The more you save, and the more disciplined you are at investing…

The better you typically do over time.

But Retirement Income Planning comes with a very important set of principles that you must master:

✅ Income Continuation is the Desired Retirement Outcome

You save & invest so that you have “enough”.

But it’s not just a large pile of money you’re after…

You’re saving enough so that you can generate a comfortable stream of income in retirement.

That’s really the goal with all saving & investing.

✅ Risk Is Your Likelihood of Failure in Retirement (it’s not just stock market risk)

You can take ALL OF YOUR MONEY out of the market and still have a very risky retirement.

That’s because market risk isn’t all you’re worried about.

If your retirement income goal is $10,000 per month…

Yet you’re using income annuities and Social Security to guarantee yourself $8,000 per month…

Then your retirement plan is VERY RISKY because it GUARANTEES your failure to meet your objective‼️

✅ Relying Solely on the Market is Relying Solely on Chance

The market is an incredible vehicle for building long-term wealth.

But, if it’s your sole source of income leading into retirement you could simply get unlucky.

Too much market exposure in the 5–10 years leading into retirement can be catastrophic…

And it’s impossible to predict.

A large market drop just prior to retirement can force you to delay your retirement…

Or limit your spending severely.

That’s why you want to ensure that you aren’t exposing too much of your retirement money to market losses (especially in the critical 10-year window).

✅ Don’t Overestimate Your Risk Tolerance (once your income goes away)

Many people think they will be disciplined enough to remain invested aggressively in retirement…

This simply isn’t the case.

Many people become very different investors, valuing safety and preservation of wealth much more than wealth-building once they actually retire‼️

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